Excise hikes of 7% on natural wine, 7% on sparkling
wine and 8.5% on brandy were announced by the Minister of Finance, Nhlanhla
Nene, during the annual National Budget Speech on 25 February 2015.
“The above is the result of continuous open
dialogue between industry and various Government departments around the unique
challenges facing wine producers and cellars,” said Rico Basson, managing
director of VinPro, the representative organisation for close to 3 500 wine
producers and cellars.
Basson added that it is encouraging to see that
Government alcohol tax reforms under consideration include providing excise
duty relief to wine-based spirits such as brandy, as well as a review of the
way excise duty on sparkling wine is calculated.
The South African wine and brandy industry
contributes significantly to the country’s GDP and has close to 300 000 employees.
The industry aims to grow its contribution to the South African economy, as part of the Wine Industry Strategic Exercise (Wise) – a new
strategic framework striving towards an adaptable, robust, globally competitive
and profitable wine and brandy industry.
“Collaboration with and support from Government,
including a beneficial tax regime, will be key in achieving these objectives.
We hope to build on this going forward,” said Basson.